by Larry Summers General Manager, WTS Online [March 26, 2004]

So they went back to basics. Now, if they can get rid of all those rules set up originally by divestiture and then roll over the Telecommunications Act of 1996, they can get the status they want for themselves—that old Ma Bell monopoly.

Thanks to the FCC, it would appear that those at the top of the heap of the Bell-Head companies could take over everything they lost back in the bad old days of divestiture. By riding roughshod over all in their way, by employing lobbyists and lawyers by the gross, and by playing fast and loose with the rules, they can regain near total monopoly power over all things telecommunications.

In other words, they will be kings.

Actually, they will for sure be a real-life form of Godzilla. And the consumer will be the victim. For example, they won't keep low DSL rates forever—just long enough to get rid of most of their pesky, innovative competitors. They will keep a few low-level CLECs around to prove competition in case those irritating regulators wake up and start complaining. Rates will rise, hold times will get longer, and thousands of ISPs will go out of business. After all, they now have long distance and nobody is going to take that away from them, right?

In rural areas, that also means the local computer shop will either go under or have to start charging large sums to work on computers and networks. In most places you will still have people working out their houses.

Try selling that one to someone looking to relocate a business in your community. And what about those folks who switched to the cheaper service? They suddenly discover that there is nobody in town who can fix their computers or service their networks. Yes and their rates for broadband have gone up as well.

In other words, prices will go up and service will go down. How does the consumer win under that formula? How do we keep innovations alive in that atmosphere? How many jobs will be lost at the phone company and its hapless group of competitors?

A chorus, singing against the dinosaurs
The only way the Bell-Head Empire—godzilla—can be stopped is with political pressure.

All of us are voters. We have employees who are voters. Most important of all, most local ISP organizations are exactly that, local. Even in the face of RBOC employees packing a hearing room or sending down their scared-to-death CWA workers to try and intimidate a State Senator or your State PUC, you can still be heard.

But one voice crying in the weeds isn't going to get any attention. It is going to take all of you—yes, this means you too—to raise a stink. This means go off and read the sites I mention. This means making the calls and writing the letters I suggest that you write.

Pick something and go after your Congressman about it. Heck, it might be failure of the FCC to follow an Executive Order, or suggesting a criminal investigation over "Missing" equipment. There is so much to choose from. And don't forget your State representatives and PUC.

And yes, it means organization and a bit of money each month, unless you want to commit suicide with a dull knife. Here is just one example from one ISP, Internet America:

Note the drop in total subscribers, from 118,000 to 76,000. I mentioned it earlier in this diatribe.

The bottom line is simple. From their actions, it is obvious that the surviving RBOC companies are attempting to take over the whole ISP planet. And the most vulnerable within that industry is the small, rural ISP. The FCC decided to partially defend the CLEC industry and hang the ISP out to dry—against the wishes of the Chairman, Michael Powell, who wanted to hang all the competition out to dry and at the mercy of the phone companies.

I doubt that there is a course of action that can save us. I could be wrong. I do know that if each threatened ISP will write his or her Congressman and Senator, it wouldn't hurt. If you do decide to write, I would appreciate a copy of the letter just so I know that others are trying. Send the e-mail to jls (at) wts.net.

What ever you do or not do, I wish you well. I may have a few things more to say in the short months ahead. The phone companies have rolled over me three times in the past. We shall see what happens this time.

Larry Summers—My opinions are my own.

— End

 

1. Opinion: Godzilla vs. Bambi on the ISP Planet

2. Doing the research

3. Cranking up the stomp and squash machine

4. A chorus, singing against the dinosaurs